Sundial Reports Second Quarter Results as Operations Ramp Up CALGARY

Sundial Reports Second Quarter Results

as Operations Ramp Up

CALGARY, Aug. 14, 2019 /CNW/ - Sundial Growers

Inc. (Nasdaq: SNDL) ("Sundial" or the "Company") today reported its financial results for the second quarter

ended June 30, 2019. Sundial is an international cannabis company with state-of-the-art facilities in Canada and the United Kingdom,

providing quality and consistent products consumers can trust. This is Sundial's inaugural quarterly earnings release as a public

company following its listing on Nasdaq on August 1, 2019.

"Sundial accomplished great things this

past quarter and our team's solid execution across key areas of our business resulted in significant revenue growth," said

Torsten Kuenzlen, Chief Executive Officer of Sundial. "We are very confident in our go-to-market strategy, our strengthened

balance sheet and our ability to execute upon organic growth opportunities. With the completion of our initial public offering

and Bridge Farm acquisition subsequent to the second quarter, we are well on our way to becoming a leading international cannabis

company. We are working diligently to craft high-quality cannabis products that consumers can trust."

All information in this press release is in

Canadian dollars unless otherwise indicated. Sundial will host a conference call and webcast at 8:30 a.m. EDT (6:30 a.m. MDT) on

August 14, 2019, during which management will discuss financial results and provide a general business update. Dial-in details

A complete copy of Sundial's unaudited interim

consolidated financial statements and related Management's Discussion and Analysis ("MD&A") for the three and six

months ended June 30, 2019 can be obtained through the Company's website at www.sndlgroup.com, EDGAR at www.sec.gov

and SEDAR at www.sedar.com.

SUCCESSFULLY COMPLETED IPO ON NASDAQ

Subsequent to quarter end on August 1, 2019,

Sundial successfully completed its initial public offering (IPO) on Nasdaq under the symbol SNDL. Sundial issued 11,000,000 common

shares at a price of US$13.00 per share, for gross proceeds of US$143,000,000.

Sundial intends to use the net proceeds from

the IPO, in combination with cash on hand, other anticipated sources of financing and expected cash flow from operations, to complete

the construction, expansion and transition of its cultivation and processing facilities. The remainder of the net proceeds will

be used for capital expenditures required to maintain the Company's productive capacity on an ongoing basis, future acquisitions

and general corporate purposes.

Q2 2019 FINANCIAL HIGHLIGHTS

Sundial reported gross revenues of $20.3 million in the

second quarter of 2019, 12 times higher than the previous quarter. The Company's production and sales ramped up exponentially with

our added growing capacity and rapidly improving harvest yields.

9,551 kilograms of cannabis were harvested from 94 crops

during the second quarter of 2019, compared to 1,896 kilograms from 30 crops during the first quarter.

4,741 kilograms of cannabis were sold during the second

quarter, a 14-fold increase from the first quarter of 2019.

The Company's average net selling price was $4.07 per gram

in the second quarter, compared to $4.64 per gram in the first quarter of 2019. The average net selling price was affected by the

sale of lower-priced trim during the second quarter.

Cost of sales decreased to $2.20 per gram in the second

quarter of 2019 from $2.41 per gram in the previous quarter, reflecting the increasing scale and efficiency of the Company's operations.

Sundial's net loss for the second quarter was $12.4 million,

down from $16.7 million in the first quarter.

The Company reported an Adjusted EBITDA(1) loss

of $0.5 million in the second quarter of 2019, improving from an Adjusted EBITDA(1) loss of $5.5 million in the first

Key Financial Highlights

Financing Highlights

In May 2019, Sundial closed a private placement

of 8% convertible notes for proceeds of $93.2 million. The proceeds of the notes were used to retire existing debt and to enhance

On June 27, 2019, the Company entered into

a term debt facility consisting of two tranches totalling $159.6 million. The first tranche of $115.0 million was used to fund

the acquisition of Bridge Farm as described below. The second tranche currently remains unfunded and is subject to various conditions

Acquisition of Bridge Farm in the UK

On July 2, 2019, Sundial acquired the Bridge

Farm Group, a leading producer of ornamental plants, flowers and edible herbs supplying retailers across the United Kingdom and

other parts of Europe. This was a significant step forward in Sundial's strategic growth plan as Bridge Farm's acquisition will

enable Sundial's plan to produce and sell high-quality CBD products globally. Bridge Farm's facilities position Sundial to become

a leader in the "Help" (health and wellness) sector and a leading global cannabis company.

Acquisition of a 50% Interest in Pathway

Rx Inc. (Pathway Rx)

In June 2019, Sundial acquired a 50% interest

in Pathway Rx, a company that uses advanced technologies, including machine learning approaches, to screen an extensive library

of cannabis strains to identify and customize treatments for symptoms associated with a wide range of medical conditions. In the

future, Sundial intends to leverage Pathway Rx's cannabis strains to develop cannabis-based pharmaceutical drugs, including strains

initially targeted towards symptoms associated with cancer, skin disorders, skin protection and rejuvenation, and inflammatory

Top Leaf and BC Weed Co. Brands

Sundial secured the world-wide proprietary

rights, including copyrights and trademarks, to a portfolio of brand names, designs, domain names and other intellectual property

associated with Top Leaf, BC Weed Co. and certain other brands. Top Leaf and BC Weed Co. are recognized brands that are supported

by award-winning cultivars and loyal consumers.

Additional Health Canada Licences

On June 14, 2019, Sundial received a Standard

Cultivation and Standard Processing license from Health Canada for an additional 115,000 square feet of cannabis cultivation at

its flagship facility in Olds, Alberta. Each of the 34 newly licensed flowering rooms has been purpose-built for the cultivation

of premium cannabis. Sundial is on track with construction plans for the Olds facility and is targeting full operational capacity

by the end of the year. When fully operational, it will have 114 individual, purpose-built indoor flowering rooms, occupying a

total of approximately 450,000 square feet.

More than 150 Harvests

Due to its purpose-built modular facility in

Olds, Alberta, Sundial successfully achieved more than 150 harvests to date in 2019 with average yields of more than 50 grams per

At the end of Q2 2019, Sundial had a total

of 650 employees, adding a total of 259 employees over the quarter. Following the Bridge Farm acquisition, Sundial now employs

nearly 1,000 employees globally, on a full-time and seasonal basis, bringing economic benefits to the local communities in which

the Company operates.

In addition to the rapid growth of the team,

Sundial is actively investing in its employees to enhance capabilities and productivity.

The Sundial brand offers five product lines:

Calm, Ease, Flow, Lift and Spark. Each line is focused on meeting specific needs with tailored product offerings that provide premium

consumer experiences.

To date, Sundial has launched four products

under the Sundial line:

Zen Berry, under the Calm line, is an indica-dominant Shishkaberry

Daydream, under the Flow line, was second to launch and

offers high THC levels

Citrus Punch, under the Lift line, is a balanced hybrid

that leans on its sativa properties with a distinctive taste of fresh Florida oranges

Lemon Riot, also under the Lift line, is a strong, musty

lemon flavoured strain with a mid-to-high THC levels